GOLD AND SILVER AND HARD ASSETS…SUMMER 2017

By hendrixnuzzles, July 3, 2017

Pretium Resources $PVG announced on July 3 that commercial production has been achieved at Brucejack.
That achievement makes a nice breakpoint for a new thread continuation on hard assets, which I introduce herewith.
This thread is a continuation of threads posted previously by the author on gold and silver and hard asset investments. It incorporates the changes that have occurred in my outlook
since January. Most of the companies I am long have been subject to lengthy due diligence and discussion, which you can find on prior threads.

PURPOSE My intent is to find and discuss good hard asset and commodity ideas. The thread is aimed at those who share the same general outlook. I favor royalty companies, developers, small to mid-cap miners, and explorers. I am wary of big-cap miners, ETFs, and indexes. I am strongly influenced by the leadership and management of the companies under discussion.

I am a believer in the concept of optionality as propounded by Rick Rule. And remember that as investments, in general, MINERS SUCK. We are looking for those that suck the least and have the most upside, or speculations we believe have the best chances of appreciating. My favorite jurisdictions are Canada and Australia, but I will look at sketchy neighborhoods like Turkey, DRC and Mongolia and speculate there if I think the story is compelling. I am also a big fan of Robert Friedland and I believe there is a technological materials and commodity revolution taking place, which subject is also best suited to the other thread: Scandium, Cobalt, and Water Purification: CleanTeQ Holdings.

My outlook for the sectors (excluding scandium and the rare earth battery metal complex) is as follows:

GOLD AND SILVER INVESTMENTS…Precious metals remain a focus on this thread. I believe that gold and silver prices have been and continue to be a target of manipulation and price suppression by powerful groups, including and especially governments and central banks. I take these suppressive actions to be a reality and part of the landscape. It is pointless to cry about it, but instructive to observe what is happening.

I believe these efforts will eventually fail, but they can visit havoc on prices and values in the meantime and keep prices artificially low for long periods. But not forever.
Meanwhile I will maintain my positions in the sector and lookfor the very best speculations and investments in it.

So I am still bullish and gold and silver investments for the long-term, although the proportion of them in my investments in my stock portfolio is being reduced somewhat.
That proportion is still probably much higher than that of most readers.

My gold/silver longs are:

Miners, even though miners suck: $PVG Pretium Resources, $MAG Mag Silver
Royalty/streamers: $WPM Wheaton Precious Metals, $SAND Sandstorm Gold. Was long $FNV but did not like their recent shift to gain exposure to oil and gas, so I am out.
Developers: $SA Seabridge, $BCEKF Bear Creek, $KNTNF K92 Mining
Exploration speculations: $CNRIF Condor, $ERDCF Erdene Resource Development, $KVLQF Kivalliq Energy, $CLASF Colorado Resources
Physical and redeemables: I hold physical in non-numismatic gold and silver, and I am long $PSLV.

COPPER, ZINC, NICKEL…I am bullish and welcome discussion of tickers in these commodities. My only long at the moment is Ivanhoe Mines, $IVPAF.
$IVPAF has some political and jurisdiction risk in DRC, and minor exposure in South Africa; so I think introduction of other ideas is of benefit.

SCANDIUM, COBALT, and WATER PURIFICATION: Please revert to my thread devoted to this. Discussion of battery technology and mining technology is best posted on that thread.
My conviction pick/stock speculation here is $CTEQF, CleanTeQ Holdings, which has its own thread.

LITHIUM: I am long Galaxy Resources but I am not terribly excited by the lithium space as a commodity play;
discussion of lithium and batteries should be on the other thread Scandium, Cobalt, and Water Purification: CleanTeQ Holdings.

PLATINUM GROUP METALS (PGM) Fair game for thread discussion.
My only long is Ivanhoe Mines IVPAF, which is mainly a copper/zinc stock.

DIAMONDS I have very small positions in Lucara and Lupara, they are diamond mining speculations.

URANIUM…I’m bullish but the choices seem pretty limited. My top three investment-grade choices are Cameco first, then Cameco second, or my third pick would be Cameco. After that, you are speculating on small caps, or buying ETFS or funds comprised of Cameco and some small caps. At the moment, I am long $CCJ Cameco and UEC as a high-leverage speculation.

POTASH/FERTILIZER…very interested because it is at the intersection of food and mining, but no position at present. Ideas welcome.

AGRICULTURE…very interested. A large sector but really not too many choices if you rule out futures, like I do. No positions as of this writing, but I have been watching WHGPY (Chinese pork processor who bought Smithfield), LAND (Gladstone Land, California farmland), INCPY (Input Capital, a Canadian canola, streaming model).

OIL AND GAS… Currently I have no positions in oil and gas as I see uncertainty in long-term demand, no real problems on the supply side, and more competition from other energy sources, primarily from the battery/electric sector. But I would welcome good ideas accompanied by strong reasons and decent due diligence and research. This field is so big and complex we could get completely lost just tossing names around. If someone has conviction and knowledge about a company, discussion is welcome.

SOLAR, WIND, COAL, IRON ORE, ALUMINUM, STEEL…really not too interested. The results depend too much on politics, the time frames seem too long. But I am not completely closed-minded on it if you have conviction on something. I am bullish on aluminum vis-a-vis steel but prefer more leveraged, long-term scandium alloy to aluminum.

****
DISCLOSURES. I am a retired executive and an amateur investor. I like both fundamental and technical analysis. I am a medium-term to long-term position player and prefer to discuss stock investment in that context.

I am not an expert in any of the commodities discussed, nor am I qualified to give advice. I change my mind on investment choices and my opinions are subject to change at any moment. Everyone makes mistakes and I make more than my share.
.
When I post, I express my opinions and my positions. These are just that…they are my opinions and my positions. They are not advice or recommendations, which I remind you I am unqualified to make. Caveat emptor. You are responsible for your decisions, and I am responsible for mine.
Political developments and opinions should be introduced on this thread only when they have a clear bearing on the commodities or companies under discussion.

I would like to operate in a friendly, honest, and constructive atmosphere.
As thread moderator I reserve to myself the role of referee, censor, arbiter, and Grand Poobah, subject to the over-arching authority of Travis, who owns the site and who has on occasion exercised his right to ruthlessly censor and suppress my radical blatherings.

**Please note: this post has been closed to further comments. The discussion has moved over to the most recent Gold, Silver and Hard Assets post, which will always be the topmost one on Hendrixnuzzles’s Stock Gumshoe page.**

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

dunnydame
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dunnydame

Aaaah! The order of postings has been taken over by a poltergeist. Probably related to the one unthreading the threads on the Oncotutorial blog.

hendrixnuzzles
Guest
hendrixnuzzles

Silver coins…Current price for $100 face value of
pre-1964 US silver coins, 90% silver, is over $1300.

This means that in only 50 years, the money has been diluted by a factor of 13.

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petervr
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petervr

I can remember back a “few”years, when you could buy junk silver coins for less than the value of the silver they contained. I seem to remember that the discount ran about 10%, but this may have been 10 years ago. That was quite a bargain.

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dougj34
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dougj34

So if one stashed a $1 bill and a silver dollar in his or her mattress 50 years ago there is no way to doubt which form of currency stored value. Almost forgot, the paper money from 50 years ago is no linger honored, Nixon saw to that in 1971. Hard assets folks. The fiat currency is what we use to get what we want, just need a whole lot more of it to satisfy our want. Best.

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secretsquirrel
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secretsquirrel

Bloomberg original story – https://www.bloomberg.com/news/articles/2017-07-17/ivanhoe-s-congo-success-follows-deals-with-president-s-brother July 18, 2017 11:09 ET Bloomberg story on Ivanhoe’s success in the Democratic Republic of Congo flawed by misleading headline and the erroneous reporting and omission of critical facts, Ivanhoe Mines says VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 18, 2017) – Ivanhoe Mines Ltd. (TSX:IVN)(OTCQX:IVPAF) – (Ivanhoe Mines has issued the following statement in response to a story published by Bloomberg News earlier today.) A story published by Bloomberg News today misleads readers with a false and damaging headline and contains erroneous and misleading claims concerning Ivanhoe’s success at the Kamoa-Kakula Copper Project in the Democratic… Read more »

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hedy1234
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hedy1234

Secret

Nice find. Reading the materials actually gives me more confidence…. until you have a regime change.

secretsquirrel
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secretsquirrel

You do business with whoever is in at the time, that you have no choice really. Let’s see what Ivanhoe has to say on the matter as I believe they are better placed to give the real facts.

Huge discovery for sure, of which the limits have yet to be fully defined, for that reason I’m staying Long. Interesting times ahead especially towards the end of the year politically and new drill results due in….

secretsquirrel
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secretsquirrel

http://www.stockchase.com/company/view/4463

Don Vialoux , Research Analyst

The base metal stocks over the last three weeks are showing some very strong technical strength. The long term trend is still to the upside. The resistance is at the $5.50 level. Strength will continue seasonally until the end of July. It is outperforming the TSX and above the 20 & 50 day moving averages. Watch for it to move above the $5.50 mark.

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secretsquirrel
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secretsquirrel

Posting this here and on the CleanTeQ thread as relevant to both: http://www.mining.com/web/clean-energy-transition-increase-demand-minerals-world-bank/ Clean energy transition to increase demand for minerals — World Bank A new World Bank report released today highlights the potential impacts that the expected continuing boom in low-carbon energy technologies will have on demand for many minerals and metals. Using wind, solar, and energy storage batteries as key examples of low-carbon or “green” energy technologies, the report, “The Growing Role of Minerals and Metals for a Low-Carbon Future” examines the types of minerals and metals that will likely increase in demand as the world works towards… Read more »

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Griffin
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Griffin

Good article but with a couple of faults. Battery technology was lead-acid and alkaline for how many years, then there Ni-cad, and nickel metal hydride batteries. Then there is Lithium-ion batteries which have out performed all previous batteries with hype to date. Which is to say that battery technol9ogy is moving at a pace that we have not we have not ever seen till now. Left out of article is vanadium re-dox flow batteries which are a better storage battery than Lithium. This morning newsletters there was mention of “Inventus Power Announces Supercapacitors for Data Storage Backup Applications”, “Trojan Battery… Read more »

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steve013
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steve013

Many thanks for posting this. Cleanteq is (more and more) ‘piquing’ my interest. Anyone here know how to invest in this stock from Canada? I checked through my broker (Questrade) and can’t seem to. find the ticker.

thx!

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v4t1n4
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$CTEQF, bought thru TD WebBroker, but only by phone for most OTC stocks that can’t be placed online. Big issue for me with TD WB, but this one went smoothly. Still, the traders will place the order for the $9.99 cost when it can’t be done online.

(My Canaccord broker rolled her eyes, and sounded like it would take three weeks to get three Snr VP authorizations to place such a weird order.

jjamms6
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jjamms6

$CTEQF All my trades are online RBC Direct Investing – immediate and never had an issue – OTC listings can’t be bought in a registered (RRSP, TFSA) account.

jerome50
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jerome50

I have used HSBCinvest direct for many years now and have had zero issues with OTC stocks of even stocks on the Chinese or Paris exchanges. Any accounts over $100,000 I believe trades are $6.99 or less than that $9.99.

steve013
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steve013

will try options you provided. thank you v4, jamm and jerome .. much appreciated!

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secretsquirrel
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secretsquirrel

These Are The Robots That Will Mine In Hell

https://www.forbes.com/sites/jonmarkman/2017/07/14/these-are-the-robots-that-will-mine-in-hell/#6842e8bf6fb7

If BHP is right, and EVs displace 8% of traditional vehicles by 2035, the math works out to 8.5 million tons of new demand. That is about one-third of the total current demand. You can imagine what that imbalance would do to copper prices.

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secretsquirrel
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http://www.marketwired.com/press-release/ivanhoe-mines-appoints-two-additional-leading-financial-institutions-arrange-project-tsx-ivn-2226700.htm

Ivanhoe Mines appoints two additional leading financial institutions to arrange project financing for the development of the Platreef PGMs, nickel, copper and gold mine in South Africa

Expressions of interest now received for approximately US$900 million of the targeted US$1 billion project financing

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niizajim
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OK, update on ZONTE METALS. PR out today announcing the beginning of drilling in the Yukon on it’s McConnell’s Jest property. Here is the relevant part: “HALIFAX , July 19, 2017 /CNW/ – Zonte Metals Inc. (ZON.V) (the “Company” or “Zonte”) is pleased to announce that a rig has been mobilized to the McConnells Jest Project and drilling has commenced. A total of about 1500 metres will be core drilled with the first several holes targeting the Hill Zone. This will be followed by drill testing the Two Four Zone. The company will provide updates on the drill program as… Read more »

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renbycage
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renbycage

GPL: It looks to me like it is a good time to buy silver, and I have been doing DD trying to figure out the best play. My conclusion and purchase: Great Panther Silver. GPL checked off the boxes for me: no debt, plenty money in the bank, hitting record high silver production, excellent leverage to silver price, reasonable costs, mexico jurisdiction, organic growth potential……. but the dealmaker was the thing I really look hard for… beaten down stock price. Purchase price 1.25 with a target of 2.

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motion
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sandstorm, when do you expect some up Travis? ants in pants for some gains. pvg is doing it. thanks

Travis Johnson, Stock Gumshoe
Admin
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I don’t. I expect that if gold rises, Sandstorm will rise faster — but I don’t know when or if that will happen. They should have substantial growth in ounces produced per share, or attributable gold, or whatever operational metric you want to use, over the next two years, assuming that mine development proceeds as expected (which means gold doesn’t collapse and put projects on hold), but there’s no particular reason, other than shifting sentiment because of a rising gold price, that the stock should do anything dramatic. Sandstorm is cheaper than the larger royalty companies, but it’s not so… Read more »

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motion
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motion

Travis your the best!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!111111111111111111

motion
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motion

PVG changes of buyout or just straight play as is??????????????????????????????/

Sharon Schreiner
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Sharon Schreiner

motion, I don’t understand your above sentence about PVG. Please could you explain what you are trying to say?

niizajim
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niizajim

Follow up on Zonte Metals: ZON.V (I have a substantial position) Since May, Bill Carson has been working for Zonte Metals. He is the person who staked Victoria Gold’s claims that neighbor Zonte’s property and he, perhaps better than anyone else, knows that area well. On Stockhouse website, he recently posted this about ZON.V under the name Hardrockclaim: “I am, of course, limited to public knowledge. I will say (as has been publicly documented) that, even with very limited exploration prior to the agreement with Zonte, at least 6 “areas of interest” were identified and there is one HELL of… Read more »

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denton
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denton

$SSVFF. Latest drill results continue to expand the potential of this deposit. Vancouver, British Columbia–(Newsfile Corp. – July 25, 2017) – Southern Silver Exploration Corp. (TSXV: SSV) (OTCQB: SSVFF) (FSE: SEG1) (“Southern Silver”) reported today that it continues to identify high-grade mineralization from the current core drilling program on the Cerro Las Minitas project, Durango State, Mexico. Recent drilling has identified two thick intervals of mineralization in hole 17CLM-101 opening up the potential for significant extensions to the Blind Zone and Skarn Front deposits to the southeast of their currently drill extents. Highlights from hole 17CLM-101 include: a 17.6m down… Read more »

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hedy1234
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hedy1234

$IVANHOE

Copper at 2 year high. Heading back to $3.00. IVN should start to really run from here.

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secretsquirrel
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secretsquirrel

Also awaiting news results from the now 15 drills.

Robert Friedland – “You’re going to need a telescope to see the copper price in 2021!”

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secretsquirrel
Irregular
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secretsquirrel

Robert Friedland: Copper Will Continue to Outperform Gold
Speaking at this year’s Sprott Natural Resource Symposium, Friedland also named three companies he’s currently bullish on.

http://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/robert-friedland-copper-outperform-gold/?mqsc=E3900290

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hedy1234
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</